NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Gary Ira Purcell
AWC/2009020546301

Registered Principal Purcell participated in the distribution of unregistered shares by offering and selling, through the means of interstate commerce, over 14 billion unregistered shares without an exemption in violation of Section 5 of the Securities Act of 1933. Purcell failed to ensure that each IB Equity Form he obtained from corporate customers was complete when he submitted them to the clearing firm, and should have performed a more thorough due diligence inquiry to ascertain whether the shares of a security were registered or exempt from registration, particularly since most of the trades occurred after the grant of summary judgment to the SEC was made public.

Gary Ira Purcell: Censured; Fined $2,500; Suspended 20 business days

Tags: Unregistered Securities